In many large cities, such as New York City and San Francisco, low-income households face the dual challenges of excessively high rents and a shortage of available housing units.

C- In the long term, as property owners adjust to price changes, consider the policy's effects. Consider the limited mobility of many low-income families in cities like New York, where moving costs and social networks deter relocation to other cities and suburbs. At the same time, labor supply is more elastic in the long-run. Analyze who stands to gain more from the tax cut in this scenario. Employ the supply and demand model to support your analysis and provide explanations.